BC Oil & Gas Report 2020-2021

Publications mail agreement #40934510

2020-2021

What is ESG? It’s shaping how pipelines do business Coastal GasLink on its way to achieving 2020 construction milestones Measuring First Nations’ support to B.C.’s oil and gas industry

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In this issue

B.C. Oil & Gas Report is published by

Editor’s message.........................................................................................

What is ESG? How it’s shaping the pipeline industry By the Canadian Energy Pipeline Association........................................

A year of milestones Update from Coastal GasLink...................................................................

8

DEL Communications Inc. Suite 300, 6 Roslyn Road Winnipeg, Manitoba Canada R3L 0G5

10

President & CEO David Langstaff

12

Associate Publisher Shayna Wiwierski shayna@delcommunications.com

Partnerships are key in the new methane regulation and research initiative By the BC Oil and Gas Commission.........................................................

14

Canada’s role in economic recovery and climate change......................

15

Pro or con? Measure First Nations’ support of the BC oil and gas industry..................................................................

16

How an oil and gas site becomes green again By the BC Oil and Gas Commission.........................................................

16

INDEX TO ADVERTISERS BK Two-Way Radio Ltd..................................................................................... 11

Managing Editor Tammy Schuster tammy@delcommunications.com Sales Manager Dayna Oulion dayna@delcommunications.com Account Representatives Brian Gerow | Jennifer Hebert Mic Paterson | Anthony Romeo Contributing writers Chris Bloomer | Stewart Muir Production services provided by S.G. Bennett Marketing Services www.sgbennett.com creative Director / design Kathy Cable

Compass Bending Ltd....................................................................................... 17 D&D Insulators Ltd.............................................................................................. 3 District of Kitimat............................................................................................... 11 Factors Western................................................................................................. 17 Horizon Testing Inc............................................................................................. 9 International Union of Operating Engineers Local 115................................ IFC Netzsch Canada................................................................................................... 4 RTC Rail Solutions Ltd.................................................................................. OBC Trans Peace Construction................................................................................... 5 Van Houtte Coffee Services................................................................................ 7

ON THE COVER Project engineer Elise Chow-Stiefvater at work at Coastal GasLink’s Kitimat Meter Station.

© 2020 DEL Communications Inc. All rights reserved. Contents may not be reproduced­by any means, in whole or in part, without the prior written permission of the publisher.

While every effort has been made to ensure the accuracy­of the information contained herein and the reliability of the source, the publisher­ in no way guarantees nor warrants­the information­and is not responsible­for errors, omissions or statements­made by advertisers.

Opinions and recommendations made by contributors or advertisers are not necessarily those of the publisher, its directors, officers or employees.

Publications Mail Agreement #40934510 Return undeliverable Canadian addresses to: DEL Communications Inc. Suite 300, 6 Roslyn Road Winnipeg, Manitoba R3L 0G5 Email: david@delcommunications.com

Story on page 12.

6

B.C. Oil & Gas Report • 2020-2021

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e recognize that the pandemic has created challenges and uncertainties for communities small and large across the north. That’s why we’re proud to be able to help people get safely back to work this summer through the many fields

and careers that our project touches.” A quote taken from an update provided

by Coastal GasLink for this issue of the B.C. Oil and Gas Report sheds a positive light on an unprecedented year. Add to that a snap election which put many organizations into sudden (if not more) feelings of uncertainty – this issue is without messages from our provincial leaders for that reason.

In the 2020/2021 B.C. Oil and Gas Report, Chris Bloomer from the Canadian Energy Pipeline Association provides insight on ESG (environmental, social, governance) and how it is shaping the way in which the energy sector operates.

We hear from the province’s energy regulator, the B.C. Oil and Gas Commission, on new methane regulations and research and how it supports the provincial government’s CleanBC plan. This issue also provides an excerpt from a fact sheet researched by the Canadian Energy Centre measuring the support of First Nations communities for B.C.’s oil and gas industry.

I hope you enjoy this issue of the B.C. Oil and Gas Report, and please contact us if you have any questions, comments, or ideas.

Tammy

@DELCommInc. n

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What is ESG? It’s shaping how pipelines do business

BY Chris Bloomer, President & CEO, Canadian Energy Pipeline Association

T

hree letters – E-S-G – are shaping how the energy industry does business. The letters represent

• Major environmental issues, such as environmental protection and emissions reduction.

Members of the Canadian Energy Pipeline

environmental, social, and governance.

These are some of the performance measures lenders and investors consider when they make decisions for responsible or sustainable investments.

ESG isn’t a fad that will go away

How are pipeline companies responding to ESG?

• Social issues, such as labour practices and talent management.

• Governance issues, such as board diversity and executive pay.

Association (CEPA), the transmission pipeline companies responsible for transporting the majority of Canada’s natural gas and oil, welcome the opportunity to highlight their ESG

soon. It’s here, it’s important, and it

Sooner, rather than later, companies

performance. Here are just a few of the

affects how companies operate their

will be unable to access capital

ways CEPA members respond to ESG

businesses.

markets without first providing reliable

requirements:

information on their ESG performance.

The concept of ESG isn’t new to

For several global stock exchanges,

Canada or our energy industry.

ESG reporting is now a requirement.

Canadian energy companies, including oil and gas producers and pipelines, adopted world-leading environmental, social, and governance standards years ago. Those standards fell under the banner of corporate social responsibility

And this means, on an annual basis, publicly traded companies will have to disclose complete and accurate

members make major investments in new technologies and practices to reduce their environmental footprint, lower the risk of a spill, and improve energy conservation.

information about their performance

On social factors, Canada’s pipeline

against ESG targets.

companies work tirelessly to create lasting

(CSR) or sustainability. It’s only

The financial impact of surges in

recently that the term “ESG” became

sustainable investing – where investors

a mainstream term for performance in

incorporate sustainability factors into

those important areas.

On environmental factors, CEPA

their investment decisions – is huge.

relationships based on mutual benefits with a multitude of groups, including employees, local communities, and Indigenous communities.

What’s involved in ESG reporting?

According to National Bank of Canada,

On governance factors, our members

sustainable investing reached over

know that sustainability begins and ends

US$30 trillion in 2018. And that’s a

with leadership. So, they are increasingly

ESG performance covers three

jump from US$23 trillion just two years

incorporating ESG into their governance

measures:

earlier.

structures.

10 B.C. Oil & Gas Report • 2020-2021

On environmental factors, CEPA members make major investments in new technologies and practices to reduce their environmental footprint, lower the risk of a spill, and improve energy conservation.

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advantage. We are one of the world’s most responsible global oil and gas suppliers. That’s because we develop and transport our resources under some of the strictest environmental, social, and governance standards in the world. And, despite major growth in renewables, we know oil and natural gas will remain essential parts of the energy mix for decades to come.

As global demand for reliable and affordable energy continues to rise, Canada’s pipeline industry is evolving as a leader in supplying cleaner, responsible energy to the world. It’s fair to say CEPA members have been

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B.C. Oil & Gas Report • 2020-2021

11

2020 - A year of milestones for Coastal GasLink

C

oastal GasLink construction is well underway with a number of project milestones achieved in 2020, including installation of pipe.

September marked a peak for the project’s summer construction program, which kicked off in July and continued to safely put people back to work, providing thousands of well-paying jobs that support local families as part of B.C.’s healthy economic recovery.

“Mainline pipe installation is like

can happen over a few days to weeks,

a moving assembly line,” says Dan

including backfilling the trench.

Bierd, Vice-President, Pipeline

There’s no question this is an exciting

Implementation. “Once the land is

development of the project, but just as

cleared and graded, crews can line

important is the continued health and

up pipe sections roughly 20 metres in

safety of our workers and stakeholders,

length along the route to bend, weld,

focus on our communities and

and coat. Then, pipe is lowered into

Indigenous partners, and consideration

the ground and covered. The entire

for the environment.”

process for placing segments of pipe

The project also broke ground at its

While construction has continued to ramp up across the project route in northern B.C., the health and safety of the project’s workforce, their families, and surrounding communities remained at the forefront.

Mainline pipe installation and other milestones The summer construction season saw several major project milestones, including the beginning of pipe installation and ground breaking at facility sites. August saw the completion of pipeline crossings at Kitimat and Groundbirch – the two locations that bookend Coastal GasLink’s 670-kilometre route.

Surerus Murphy Joint Venture, Coastal GasLink prime contractor for sections 1 and 2, crews lower a section of pipe during the Groundbirch road crossing pipe installation.

12 B.C. Oil & Gas Report • 2020-2021

Project engineer Elise Chow-Stiefvater at work at Coastal GasLink’s Kitimat Meter Station.

anchor points; the compressor and

the Coastal GasLink route.

to work this summer through the many

meter station at Groundbirch where the

Pipe stringing, welding, and installation

fields and careers that our project

pipeline begins, and the meter station

is underway across the project route,

touches,” says Kiel Giddens, Coastal

in Kitimat, where it ends and connects

putting people back to work when

GasLink’s Public Affairs Manager in

to LNG Canada’s liquefaction facility –

they need it the most. Almost 3,000

Prince George.

a $40-billion megaproject representing

people were employed on the project in

the largest private sector investment in

“Whether it’s as a labourer, medic, or

September, a peak month for activities

Canadian history. It remains on track for

construction monitor, Coastal GasLink

in 2020.

offers the opportunity to safely train

a planned 2023 in-service.

Coastal GasLink’s commitment to

and employ workers to benefit them

Protecting water and aquatic life

partnering with Indigenous and local

today and provide skills and experience

throughout construction and into

communities continues to create a

that can last a lifetime.”

operations is paramount and Coastal

wide variety of opportunities that will help support families in the north to get

As always, the health and safety of

GasLink uses state-of-the-art technology and methods to cross

back on their feet after the setbacks

water, such as Direct Pipe Installation

created by the pandemic.

(DPI), a highly specialized trenchless

“We recognize that the pandemic has

GasLink does with enhanced project-

construction method that installs pipe

created challenges and uncertainties

wide health and safety standards

underneath a waterway. In late August,

for communities small and large across

at all worksites and workforce

Coastal GasLink completed the first DPI

the north. That’s why we’re proud to

accommodations in accordance with

near Kitimat, located on the west end of

be able to help people get safely back

Dr. Bonnie Henry’s guidance. n

the workforce, their families, and surrounding communities is at the forefront of everything Coastal

Coastal GasLink’s commitment to partnering with Indigenous and local communities continues to create a wide variety of opportunities that will help support families in the north to get back on their feet after the setbacks created by the pandemic.

B.C. Oil & Gas Report • 2020-2021

13

Partnerships key in new methane regulations and research initiative

T

he BC Oil and Gas Commission (the “Commission”), the province’s energy regulator, worked with government, environmental organizations, and industry to establish new regulations that will reduce methane emissions in the upstream natural gas and oil industry by 45 per cent by 2025.

These came into effect on January 1, 2020 and are expected to have the same effect as taking 390,000 cars off the road each year, reducing methane emissions by 10.9 megatonnes of carbon dioxide equivalent over 10 years.

The new regulations support the provincial government’s CleanBC plan and address the primary sources of methane emissions, including pneumatic devices and equipment leaks (also called fugitive emissions), and compressor seals, glycol dehydrators, storage tanks and surface casing vents.

The Commission also published a new Fugitive Emissions Management Guideline and a Leak Detection and Repair Data Collection Template to support the implementation of the regulations. These include detailed annual reporting requirements, with the first submission due in 2021. The data collected will be used to confirm compliance with the regulations, assess and report on progress achieved towards reduction goals, and improve understanding of emissions from the energy sector.

This collaborative approach is continuing on emissions research through the BC Oil & Gas Methane Emissions Research Collaborative (MERC), a joint initiative between industry, government, the Commission, and environmental agencies. The group’s goal is advancing research on methane emissions from oil and gas activity to support B.C.’s methane 14 B.C. Oil & Gas Report • 2020-2021

emission reduction targets. The Commission is working with MERC on a two-year research plan to advance learnings on methane emissions from oil and gas activity.

MERC’s two-year plan will lead to recommendations on the design and implementation of key research deliverables necessary to meet methane reductions goals and to monitor the efficiency and effectiveness of B.C.’s methane regulations.

“This research plan is a product of a lot of collaboration and hard work from industry, government agencies, the environmental sector, academia, and the regulator. It sets the stage to provide needed information for the methane emissions regulatory review scheduled for 2022,” said Ken Paulson, Executive Vice President and Chief Operating Officer of the BC Oil and Gas Commission.

In addition to robust data management and involvement in research efforts, the Commission performs 4,000 to 5,000 inspections per year on oil and gas infrastructure. A variety of innovative methods and state-of-the-art tools are used by Commission inspectors to identify possible methane leaks, including optical gas imaging cameras, portable methane gas detectors, audio/visual/olfactory inspections and laser-based aerial surveys.

The Commission is committed to protecting public safety, safeguarding the environment and respecting those affected by oil and gas activity, and it strives to bring balance between the landscape we love and the energy we rely on.

For more information, please visit the Commission’s Methane Emissions page at https://www.bcogc.ca/news-publications/ trending-topics/methane-emissions. n

Canada’s role in economic recovery and climate challenge

By Stewart Muir

B

ack in May, when the federal government published its guidance on which sectors would be deemed “critical infrastructure” during the COVID-19 pandemic, energy

Of course, the particular challenges of the oil sands have never been a secret or a mystery. But we don’t often also talk about the advantages of this geological gift. It’s almost as if the oil

and utilities topped its list of 10 vital functions.

sands are like farming operations, one might even say factories.

This acknowledgement made perfect sense. Without

This has allowed operators to make adaptability a part of their

refineries, pipelines, terminals, road, and rail transport, control

mantra, “How do we optimize and improve our operations?”

rooms and centres, drilling, extraction, onshore and offshore

And those efforts are working. Overall emissions intensity in

production, processing, gas stations, truck stops, and chemical

Canada’s oil sands has decreased by 29 per cent since 2000,

manufacturing – to name just a few of the activities singled

and is expected to drop another 23 per cent by 2030. The is the

out as essential – life as we live it today would simply not be

right track to be on.

possible.

With the rise of environmental, societal, and governance factors

It wouldn’t have just been Canadians’ daily lives that would be

as screening qualifications for investors, the oil sands are

disrupted, energy and utilities are how Canada makes a living.

looking like a good bet. Among the world’s top nations for oil

Oil and natural gas exports make up one-fifth of the value of

reserves, Canada boasts the highest ESG score, an aggregation

Canada’s outgoing trade, letting us acquire things we prefer

that measures environmental performance, social progress, and

not to do without and would have difficulty making ourselves

governance data from the World Bank as received from public

– for example, orange juice, iPhones, specialized technologies,

reports. This isn’t just a sign of the industry’s commitment

and many vaccines. And since 162 billion of Canada’s 168

to do better, it reflects the improvements in the technology

billion barrels of oil reserves are in the Alberta oil sands

associated with oil production, which offers the opportunity

deposits, the federal government might as well have declared

to grow Canada’s clean technology industry from our energy

the oil sands themselves to be essential.

sector.

So it is confusing to hear, from some corners, that the demise

Recently, the Task Force for Real Jobs, Real Recovery found

of the oil sands is looming. Indeed, politicians such as former

that oil and natural gas will help Canada recover from the

Green Party leader Elizabeth May and Bloc Quebecois Leader

pandemic. Reliable nuclear and hydro power were also

Yves-François Blanchet went so far as to declare oil wasn’t just

determined to be needed, along with other renewables, carbon

dying, but was already dead.

capture and storage, hydrogen, wood products, more efficient

That’s quite a broad spectrum of perceptions. So are the oil sands essential or dead?

In truth, the oil sands are into the midpoint of its thriving story, certainly not its end. And in some cases, we’re on the brink of something new: by the end of 2022, the Trans Mountain

electricity transmission, and the development of minerals and metals needed for coming energy transformations.

It’s not an either-or discussion between traditional fuels and renewables. They’re so intertwined that we can’t realistically expect to have one without the other.

Pipeline Expansion to the west coast will be complete, allowing

The climate challenge is monumental. Action is essential.

the steady and sizeable export by sea of oil sands crude for the

Fortunately, energy-diverse Canada has a large role to play –

first time in Canadian history.

and most signs indicate that the oil sands can and will be part

Oil still supplies a significant percentage of the world’s energy

of that.

needs – 32 per cent, according to updated International Energy

Stewart Muir is executive director of Resource Works based in

Agency statistics published in August. Global oil demand is

Vancouver and convened the recent Task Force for Real Jobs,

projected to rebound in 2021 and Asia will account for 77 per

Real Recovery. This article was originally published in The

cent of oil demand growth through 2025.

Globe & Mail on September 17, 2020. n B.C. Oil & Gas Report • 2020-2021

15

Pro or con?

Measuring First Nations’ support or opposition to oil and gas in BC Produced by the Canadian Energy Centre

Quantifying actual First Nations’ positions on oil and gas development

however, it does show that elected leadership has undertaken

Oil and natural gas are a substantial part of Canada’s resource

that the impacts generated by the project are satisfactorily

economy, especially in Western Canada where, historically, the majority of activity has occurred. This extraction is also mostly a rural activity. That reality is matched by another one: The rural location of many First Nations reserves. This geographic

a community process to understand whether the benefits generated by the project are satisfactorily substantial and addressed and mitigated to allow the project to move forward in their territory.

• While fewer nations in BC (relative to Alberta) are members

“match up” of rural First Nations and Canada’s resource

of the Indian Resource Council (IRC), whose mandate

economy is not often recognized in urban Canada, where the

is “to support First Nations in their efforts to attain greater

narrative from anti-oil and gas activists and media stories on

management and control of their oil and natural gas

occasion portrays First Nations in British Columbia and Alberta

resources,” membership in this organization indicates

as broadly anti-oil and gas development.

“support” for both oil and gas development.

In fact, many First Nations are involved in and benefit from oil and gas development. Two prominent examples are Fort McKay in Alberta, which has a long history with the oil sands

• Membership in the First Nations LNG Alliance indicates support for natural gas development.

• Possessing an impact benefit agreement on either the Trans

industry, and the Haisla First Nation in British Columbia, which

Mountain Expansion Project or Coastal GasLink indicates

is embarking on new liquified natural gas (LNG) partnerships.

support for either oil or gas, respectively.

To better understand actual levels of support or opposition to

• Support is indicated if the Nation was consulted on projects

oil and gas development, the CEC produced a fact sheet that

such as Steelhead LNG, Woodfibre LNG or Prince Rupert Gas

assesses the First Nations in British Columbia and Alberta

Transmission and either signed impact benefit agreements

that are near to oil and gas development or mostly likely to be

or consented to the development of these projects in their

impacted by oil and gas development, and their position on the activity.

Editor’s note: For the purposes of this publication, we have included information that pertains only to British Columbia.

British Columbia While British Columbia is no stranger to oil and natural gas development there are few to no opportunities to produce oil and gas outside the Horn River, Cordova, and Montney regions, i.e., northern British Columbia. Thus, in our assessment of British Columbia First Nations, part of measurements included

traditional territories.

• Membership in the First Nations Major Project coalition, which has supported participation in oil and gas, amongst other large projects, would be a secondary indicator of a Nation’s support to both oil and gas development.

Results for British Columbia First Nations: Ten-to-one in favour of oil, no recorded opposition to natural gas • Oil: Of 202 B.C. First Nations, a minimum of 29 were found

both oil pipeline and natural gas pipeline projects as a proxy

to favour oil and oil pipeline development with just three

for their support/objection to oil or gas more broadly.

opposed, an almost ten-to-one ratio. Sixty-four First Nations

Of note, a First Nations community with an Impact Benefit Agreement with an oil and gas developer does not necessarily mean that the entire community supports the project; 16 B.C. Oil & Gas Report • 2020-2021

were found to non-object or be unclear and 106 First Nations were ranked as N/A..

• Natural gas: 40 First Nations were found to be in favour of

natural gas development, with none found to be opposed,

workforce (British Columbia statistics). In short, the greater

and one unclear (the Binche Whut’en is Canada’s newest

the participation of First Nations in oil and gas activities the

First Nation and does not have a clear record given the short

greater the employment and incomes for Indigenous British

history since its independence from Tl’azt’en Nation April

Columbians and Albertans. This may explain why a large

2019). One hundred and sixty-one First Nations either had no

number of First Nations record public support for oil and

public position or were not affected by natural gas projects.

natural gas activities.

Why it matters: employment and incomes

The takeaway

Oil and natural gas extraction and related activities matter to

natural gas extraction and development in British Columbia

First Nations in part because of employment and income

and Alberta is supported by the vast majority of First Nations

opportunities, as discussed in our recent Fact Sheet. According

that have a publicly available position: 29 of 32 in the case of

to the 2016 Census, for Indigenous Canadians, as for other

First Nations in B.C. for oil and 40 of 40 in the case of natural

Canadians, the oil and gas sector pays well. For example, the

gas; 46 of 46 in the case of First Nations in Alberta for oil and

median employment incomes (full-time, full- year) for self-

46 of 46 publicly available positions in the case of natural gas.

identified Indigenous Canadians in construction ($49,262),

Very few First Nations oppose resource development on

pipelines ($117,831), or oil and gas extraction ($142,833) are all

principle, reflecting the importance of these industries as a

higher than the all-industry average ($44,855).

source of local job opportunities and incomes in remote areas.

Moreover, when compared with an all-industry employment

To review the full CEC Fact Sheet, visit www.

representation average of five per cent, indigenous

canadianenergycentre.ca/pro-or-con-measuring-first-nations-

participation in oil and gas extraction is 8.6 per cent of the

support-or-opposition-to-oil-and-gas-in-b-c-and-alberta/. n

The available data compiled shows that support for oil and

Two is stronger than one.

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B.C. Oil & Gas Report • 2020-2021

17

Oil and Gas Activity: Site Restoration How an Oil and Gas Site Becomes Green Again Oil and gas sites are temporary; therefore,

The next step is to plug and seal the well.

On rare occasions an operator is declared

companies are required to plan ahead at

This is known as abandonment. Well holes

bankrupt or cannot be located before a site

the start of any development to restore the

in the oil or gas reserves are sealed off and

is reclaimed. In such cases, the site may be

environment at the end of use.

cement is poured into the wellbore to plug

designated an orphan and is cleaned up by

it. This ensures nothing can escape from the

the Commission. Regardless of what lifecycle

well into the environment.

step the site is in, any remaining restoration

Companies must minimize disturbance to land before and during operations. In

work is paid for from the industry-funded

some circumstances, companies must

After the well is plugged, decommissioning

Orphan Site Reclamation Fund. Work is then

restore the land surface of a site as soon

occurs where surface equipment is removed

completed by the Commission. This ensures

as the construction is complete. This

from the site for recyling or disposal.

sites are restored in accordance with current

decreases the amount of work necessary

standards and requirements and that all

to return the area to its pre-activity state

Once these steps are complete, the site is

known contamination risks or other hazards

later on and ensures any disturbance to

further investigated for contaminants, and

are mitigated.

the environment is minimized and public

any impacts can be remediated.

safety is protected.

Once there is acceptable environmental When a well site becomes inactive and will

quality, soils can be replaced and revegetated.

not be re-activated, there are a number of steps required to reclaim the site.

Once the site is completely reclaimed, the

The first step is to deactivate the site.

company can apply for a Certificate of

Fluids and gases are removed from

Restoration (CoR), which is authorized by the

pipelines, and surface infrastructure.

Commission and signifies the site has been cleaned up to current standards.

Reducing Environmental Impacts The Commission’s mandate is

1

2

3

to ensure operators plan oil and

Avoid and/or minimize

Mitigate impacts where no

Restore the impacted area to its

gas activities to:

impacts to environmental

realistic opportunity exists to

pre-development state.

values.

avoid.

18 B.C. Oil & Gas Report • 2020-2021

Regulation for Oil and Gas Site Closure The Commission has introduced a new regulation, making B.C. the first province in western Canada to impose in law timelines for the restoration of oil and gas wells. The Dormancy Regulation is included in the Commission’s new Comprehensive Liability Management Plan (CLMP), which ensures 100 per cent of the cost of reclaiming oil and gas sites continues to be paid by industry, protecting public safety and safeguarding the environment.

The Dormancy Regulation speeds up the rate at which inactive sites are returned to their pre-activity state. The regulation gives each dormant well site a prescribed cleanup timeline and imposes requirements for decommissioning and restoration.

An integral part of the CLMP includes rigorous compliance and enforcement checks, proactive monitoring and inspection, and investigation and enforcement of alleged non-compliance.

Reclamation of ALR? A preliminary reclamation plan for activity falling within the Agricultural Land Reserve (ALR) is submitted at the time of application and outlines how the site will be restored once it is no longer required for the oil and gas activity. It must include landuse objectives, soil handling and re-vegetation plans.

What are the Restoration Requirements?

Restoration expectations are identified in Section 19 of the Environmental Protection and Management Regulation (EPMR) under the Oil and Gas Activities Act (OGAA). Guidance for planning and carrying out restoration activities are available online at: www.bcogc.ca/industry-zone/documentation.

What is the CoR Process?

The Certification of Restoriation (CoR) process ensures land used

for potential contamination. Most sites require some level of

for oil and gas development is restored to a safe and productive

physical site investigation (soil and/or groundwater).

condition. This is done in a two-stage process: 1.

2.

The operator completes a professional environmental

To ensure operators have the financial means to restore a site the

assessment and, if necessary, address potential contaminiation

Commission has a Liability Management Rating Program, wherein

issues.

operators with insufficient assets are required to submit a deposit

A professional assessment of the surface reclamation is done to

prior to being allowed to operate.

esnure site productivity has been adequately restored.

However, there are rare occurrences where a permit holder for an The process places the responsibility on the operator to provide a

existing site is insolvent or cannot be identified. These sites can be

report from a professional to review all documentation and assess

designated by the Commission as Orphan Sites.

B.C. Oil & Gas Report • 2020-2021

19

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